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Wealth Management Solution for Your Clients

Your clients’ risk attitude measure is 4. The T-Bill rate is 3%.

Your clients have $1million to manage between the T-Bill and a risky portfolio.

You consider to recommend one of the following two risky portfolios A & B for this client: Portfolio

A: expected return 10%, standard deviation 20%; Portfolio

B: expected return 14%, standard deviation 22%.

1. Which risky portfolio will you recommend to your client?

2. What is its right weight?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92323517

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